PMI CAPM (Certified Associate in Project Management) Examination Content OutlineRisk Management and ComplianceMedium
A project team has identified several potential risks. They are now evaluating the probability of each risk occurring and the potential impact if it does occur, assigning scores to each. This process helps in prioritizing risks for further action. Which risk management process is the team currently performing?
- AIdentify Risks
- BPerform Quantitative Risk Analysis
- CPlan Risk Responses
- DPerform Qualitative Risk Analysis
Show answer & explanationAnswer & explanation
Correct answer: D. Perform Qualitative Risk Analysis
Perform Qualitative Risk Analysis involves assessing the probability and impact of identified risks using qualitative methods, often resulting in a prioritized list of risks.
Why the other options are wrong
- A. Identify Risks focuses on discovering and documenting risks, not assessing their probability and impact.
- B. Perform Quantitative Risk Analysis numerically analyzes the combined effect of identified risks on overall project objectives, which is a more in-depth numerical assessment than described.
- C. Plan Risk Responses involves developing strategies and actions to address risks, which comes after analysis and prioritization.
Qualitative Risk Analysis
The process of prioritizing individual project risks or sets of project risks for further analysis or action by assessing their probability of occurrence and impact, using non-numerical methods.
- Prioritizes risks based on probability and impact.
- Uses descriptive scales (e.g., high, medium, low).
- Often uses a Probability and Impact Matrix.
Memory trick: Qualitative is quick and dirty, Quantitative is precise and numeric.